News and Insights

Internet Tax Freedom Act: Continuing Resolution Postpones Scheduled Expiration

Tax Development Dec 14, 2015

The Internet Tax Freedom Act (ITFA) was originally passed in 1998 to bar states from enacting new taxes on Internet access. Successfully renewed every three years, ITFA was again set to expire on December 11, 2015, but has been extended by a continuing resolution into next week, when Congress is expected to pass a larger piece of legislation with provisions intended to make ITFA permanent.

The House and Senate passed different versions of the Trade Facilitation and Trade Enforcement Act of 2015 (H.R. 644), and this week, Congress has been working to complete and pass a two-year appropriations bill that would include the Trade Act, among others, while also trying to avoid a government shutdown. This week, a reconciled bill is expected to also include the language that would provide for the Permanent Internet Tax Freedom Act (PITFA). The House version of PITFA, H.R. 235, was passed on June 9, 2015, and strikes the language that identifies a finite duration for the moratorium on Internet access taxes. We expect this resolution to be made permanent this week and will follow the developments in Washington, D.C. and update you accordingly.


Jeremiah T. Lynch